If the Fed had agreed with Robert Shiller in December 2007, what actions might it have taken

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If the Fed had agreed with Robert Shiller in December 2007, what actions might it have taken differently from those it did take? How could monetary policy prevent house prices from falling?
Robert Shiller, Professor of Economics at Yale University, predicted that there was a very real possibility that the United States would be plunged into a Japan-style slump, with house prices declining for years.
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